Learn about business insurance requirements and the most common policies for real estate agents and brokers in North Carolina.
Which policies are required for real estate agents and brokers in North Carolina?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by real estate agents and brokers in North Carolina, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
Your clients may require errors and omissions insurance in a contract. Also called professional liability insurance, errors and omissions insurance provides financial protection if a client files a lawsuit claiming your work caused financial harm because it was late, erroneous, or incomplete.
State law in North Carolina requires every small business with three or more employees to provide workers’ compensation coverage, and business-owned vehicles must be covered by commercial auto insurance. Personal vehicles used for business purposes should have commercial coverage, as well.
What are the most common policies for a real estate agent or broker in North Carolina?
General liability insurance
General liability insurance is the foundation of a real estate agent or broker’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Errors and omissions insurance (E&O)
Many clients require proof of errors and omissions insurance before entering into contracts for professional services. Though E&O insurance is not required by state law in North Carolina, this policy provides crucial protection and some states require real estate agents to carry it. This policy, also called professional liability insurance, can help cover legal expenses if a real estate agent or broker is sued for unsatisfactory performance or a work mistake.
North Carolina workers' compensation
If you own a real estate agency or brokerage in North Carolina, you are required to carry workers’ compensation coverage if you have employees. If you are a sole proprietor, the coverage is optional. However, if you break your arm by tripping on the steps at a property, or develop carpal tunnel syndrome after years of working on a computer, you can turn to your workers’ comp policy to help pay your medical bills and lost wages.
Business owner's policy (BOP)
Real estate agents and brokers often qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability insurance at an affordable rate.
Commercial auto insurance
Personal auto insurance policies typically exclude business use, which means you could end up paying for an auto accident if it happens on a work errand with your personal vehicle. Commercial auto insurance is required for vehicles owned by real estate companies. Hired and non-owned auto insurance covers personal vehicles used for business purposes.
Cyber liability insurance
Cyber liability insurance can help real estate agents and brokers survive data breaches and cyberattacks experienced by your company. Many professional liability policies include this coverage, but check with your licensed Insureon agent to make sure.
What do real estate agents in North Carolina pay for business insurance?
Despite the state’s favorable cost of living and doing business, real estate agents and brokers in North Carolina can expect their business insurance costs to trend slightly higher than the national median, according to an analysis of Insureon applications. Errors and omissions coverage is typically the most costly in the real estate industry, and North Carolina is no exception. It may be tempting to forgo this policy, as North Carolina state law does not require it. However, any short-term savings could be quickly negated if you are sued without protection. In all, real estate agents and brokers in North Carolina can expect to spend less than $250 per month to secure their small business.
Save time and money with Insureon
Insureon’s industry-leading technology helps real estate agents and brokers in North Carolina save time and money shopping for insurance by comparing policies from top U.S. carriers. Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in North Carolina and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number and types of employees
- Current and projected revenue
- Business partnerships
- Insurance history and prior claims
- Commercial lease insurance requirements
Apply for free real estate agent and broker insurance quotes today.